Cardano: the “green” cryptocurrency they believe may be worth more than Facebook

One reason for this is its underlying technology, which is based on a proof of stake, not a proof of work. This means that it does not rely on power-hungry computers to process transactions and generate new Ada units.

Cardano describes itself as the “most environmentally sustainable” cryptocurrency, thanks to its innovative proof-of-stake blockchain protocol that values ​​the percentage of coins a miner owns rather than the processing power they have.

Earlier this year, Cardano founder Charles Hoskinson estimated that his network uses less power than 0.01 percent of the Bitcoin network. In theory, the proof-of-stake system could achieve more than four million times the energy efficiency of a proof-of-work system, such as Bitcoin’s.

It is not the only cryptocurrency that uses proof of stake or takes its environmental impact into consideration, but it is easily the largest.

But beyond its “friendly” aspect towards the environment, Cardano has a factor that makes it attractive to attract investors. It recently became a fully decentralized community network, which means that its parent company no longer has control over its blockchain.

“Cardano is likely to be a challenge for Ethereum as not only can it be used as a currency, but its blockchain can also be used to create decentralized smart contracts, protocols and applications. Plus, it’s significantly more scalable than Ethereum, “said Nigel Green, CEO of financial advisory firm deVere Group.

A 2019 post speculated what Ada’s price might be in the future. But they went further. Rather than simply comparing it to other cryptocurrencies, Cardano’s potential was compared to global tech giants like Amazon, Facebook, and Netflix, and the huge valuations that accompany them.

“Cardano aims to become a global financial computer,” the publication stated. “Is that more than Netflix can offer? Netflix is ​​a streaming service … We think Cardano can have a bigger impact. Could Cardano be better than Facebook? Facebook is just a social network. Cardano is here for everyone who could use decentralized currency and create decentralized services.

“What could Ada’s price be in a few years? If you agree with our comparison of Cardano to tech companies, then it’s pretty easy … It could be huge. Cardano could have a similar capitalization to that of the tech giants. “

In the year and a half since this was written, Cardano has become the fourth most valuable cryptocurrency in the world. It went from $ 0.04 to $ 2.2 with a market capitalization of more than $ 70 billion, 70 times more than in 2019.

While this may still be a far cry from Netflix’s $ 200 billion valuation, it puts it on par with Chinese tech giant Baidu, and more than the combined value of Dropbox, McAfee antivirus, Slack and LG Electronics.

The same year the post was written, Cardano was ranked as the ‘busiest’ cryptocurrency ahead of Ethereum, according to a report by market information firm Santiment, making it the most developed crypto project of 2019 out of more than 1,000 that were considered.

Bitcoin didn’t even make the top 20. It is this utility and technological potential that sets Cardano apart from its more famous rival. In addition to the online book that keeps track of transactions, Cardano has a second layer of calculation that enables everything from smart contracts and decentralized applications, to buying land and voting.

“Is Bitcoin a competitor? We don’t believe it. Bitcoin is something else, ”the 2019 publication stated.“ Bitcoin maintains the narrative of being digital gold. ”

This idea that Bitcoin is better suited to be a digital store of value has been embraced by institutional investors for the past year, who have cited its finite supply (there will only be 21 million coins) and its already established reputation of delivering a solid return. from the investment.

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Cardano: the “green” cryptocurrency they believe may be worth more than Facebook

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